663 you decide Y O U D E C I D E | | Activity | 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 will have to be treated as ordinary employment income, subject to federal and state income taxes. b.
In 1956 Plaintiff voted to give $1,500 to Princeton University. Plaintiff instituted a declaratory judgment action after Defendant stockholders questioned the proposed gift. Although a state statute allows corporations to contribute to charities, Defendants assert that the corporation’s certificate of incorporation does not allow the gift, and the corporation was incorporated prior to the statute that authorizes the gift-giving. Issue. The issue is whether Plaintiff can donate money to a charity without authorization from stockholders or through the certificate of
The 16th amendment was adopted in 1903, when three-fourths of the states ratified the agreements. If these taxes are not paid, the government has the night to take income or land as payment. Chapter 2 (5 pts) 2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax. The first safe harbor rule states that as long as the taxpayers quarterly payments equals 90% of what is due on the tax return they can escape a penalty.
Case 2 Solution: Problem Identification: How should a company account for forfeited stock subscriptions? Moreover, do such payments constitute operating or other income? Keywords: Stock Subscription; operating income; additional paid-in capital; owners’ equity; net income; operating income. Conclusion: Per 505-10-25-2, capital transactions that incur no future corporate obligations should be excluded from calculating net or operating income. Thus, the forfeited cash should become part of additional paid-in capital about any
To make up for the revenue shortfall that the reduction in rates caused, the law included a provision for implementing the federal income tax provided for in the just-ratified Sixteenth Amendment. A congressional investigation found that the country's credit and money policies were largely controlled by a handful of eastern banks. The administration's response to this discovery was the creation of the Federal Reserve System. Under the Federal Reserve Act (1913), Federal Reserve banks were set up in 12 regions across the United States. The cornerstone of Wilson's antitrust policy was the Federal Trade Commission (1914) which was intended to
Commissioner case. Banaitis and Banks argued individually to the U.S. Tax Court that contingency fees paid to lawyers should be deducted from taxable gross income. The court ruled and disagreed. The IRS said that Banaitis and Banks owed taxes on contingency fees. Banaitis appealed to the Ninth Circuit Court of Appeals, which ruled that contingency fees could not be taxed as income.
Issues such as money inconsistencies and banking panics were the reason congress established the Federal Reserve Act which was signed into law by Woodrow Wilson on December 23, 1913. In his word it was created “to provide for the establishment of Federal reserve banks, to furnish an elastic cur¬rency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.” (FRS, 2005) The Fed operates independently by financing its own operations. These finances are generated by the actions of The Board of Governors. This is a seven member board which is appointed by the president. Under them, there are twelve Regional Reserve Banks and each of these has nine directors as well.
Week One Discussion Questions • What are the purposes of a personal budget, balance sheet, and statement of cash flow? The purpose of a personal budget, balance sheet and statement of cash flow is to give a full picture of ones finances. Being oblivious to where ones money is actually going can cause stress which is small compared to the more severe instance of leading to bankruptcy because of a failure to properly manage money. • The Internal Revenue Code (IRC) is the supreme source of income tax law. When trying to resolve an income tax question, a tax practitioner will look to other sources in addition to the IRC.
E) A 130 million dollar judgment was ruled against Jim Bakker, and to be paid to the plaintiffs. Issues 1.Identify the ethical questions raised by the maintenance of PTL’s secret payroll account by laventhol partner. Does the fact the PTL was a private organization not registered with the SEC affect the propriety of the partner’s actions? The time line of H&L’s audit of PTL Club is: End of fiscal year (May 31, 1984), Audit Completion Date (Dual dated as August 31, 1984 and October 24, 1984). Based on the timeline and the above definition of subsequent events, I believe that it is a subsequent event.
Re: Common Law Rule against Perpetuities Question: What is the Common Law Rule of Perpetuities? Answer: It’s a property rule that pertains to common law and it states that no interest in land is good unless it is vested within 21 years after the creation of the interest. Question: How did the rule come about? Answer: John Robert Gray made the rule back in the early 1900’s(around the 1930’s from what I could find)which was meant to be a rule against the remoteness of vesting by insisting on the appropriate use of techniques which was meant save gifts from invalidity and regulates the devolution of wealth from generation to generation but over the years the rule has been reworded, twisted and in some cases completely abolished depending on the state. Question: How does the rule apply today?